Canadians a Major Factor in $5.7B Drop in U.S. Travel Revenue

Tourism spending by international travellers to the United States is expected to fall below pre-pandemic levels this year, with fewer Canadian travellers identified as a key factor in the decline, according to the U.S. Travel Association’s Fall 2025 forecast.

The organization projects international tourist spending will reach 80 per cent of 2019 levels, marking a $5.7 billion decrease from last year.

 

The report notes that total U.S. travel spending is expected to grow only 1.1 per cent in 2025, reaching $1.35 trillion, while inbound international visits are projected to fall 6.3 per cent, from 72.4 million in 2024 to 67.9 million in 2025.

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Credit: Tourism Economics and U.S. Travel Association

Spending by international visitors is forecast to decline 3.2 per cent to $173 billion, with the U.S. Travel Association stating that “significantly fewer visits from Canada are the primary driver of this decrease.”

 

Domestic leisure travel continues to sustain the industry, projected to increase 1.9 per cent to $895 billion in 2025.

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U.S. Travel Forecast — Volume/Credit: Tourism Economics and U.S. Travel Association

The slowdown coincides with ongoing diplomatic and economic tensions. U.S. tariffs imposed on Canada and the ongoing political rhetoric from Donald Trump, including comments suggesting Canada should become the “51st state,” have drawn Canadians’ ire, and many have forgone leisure travel south of the border.

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